During the month of June, ABC Company had total manufacturing costs of GH110,000. They incurred GH 40,000 of direct labor cost and GH 30,000 of overhead cost during the month. If the materials inventory on January 1 was GH 3,000 less that the materials inventory on January 31, what was the cost of materials purchased during the month?

Select one:

a. GH 37,000.

b. GH 40,000.

c. GH 43,000.

d. None of the above.

ABC Company manufactured 5,000 units during the month of October. They incurred direct materials cost of GH 100,000 and overhead cost of GH 40,000. If their per-unit prime cost was GH 26.00 per unit how much direct labor cost did they incur during October?

Select one:

a. GH 20,000.

b. GH 90,000.

c. GH 35,000.

d. GH 30,000.

Joes Company invests in a new piece of equipment costing GH 40,000. The equipment is expected to yield the following amounts per year for the equipment's four-year useful life: Cash revenues of GH 60,000; cash expenses of GH 32,000; depreciation expenses (straight line) of GH 10,000. The cost of capital is set at 14% (DF@ N=4, 14% = 2.914). What is the new present value of this investment in the equipment?

Select one:

a. GH 52,452.

b. GH 81,592.

c. GH (4,480).

d. GH 41,592.

It costs a company GH22 of variable costs per unit and GH12 of fixed costs per unit to produce a product that sells for GH56. A buyer offers to purchase 8,000 units at GH40 each. If the special offer is accepted and produced with unused capacity, operating profit will:

Select one:

a. decrease GH 142,000.

b. increase GH 109,000.

c. increase GH 146,000.

d. increase GH 144,000.